KLCI waves 76 - DEAD CAT BOUNCE ON KLCI TO END SOON?

hotstock1975

Publish date: Mon, 20 Sep 2021, 12:37 AM

Weekly Time Frame

To recap from prior session 75, KLCI continued to pull back after failed attempting to close above 1600. The support range of 1562-1575 is still the level to watch for either direction. Even short term downward pressure still remain, I am still expecting an consolidation above these support range before clearer signal emerged.

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For the past one week, downward pressure continued and sent KLCI to lower level but supported at DT2 line. An short term consolidation above DT2 line is expected before clear signal signal emerged. Let's check the temperature of the trend.

TREND indicators

1) -DMI (red line) is heading up with greater margin indicates bear strength is increasing with greater pace.

2) +DMI (blue line) is heading down with greater margin indicates bull strength is decreasing with greater pace.

3) ADX (pink line) is still decreasing with consistent margin implying that the volatility of the current trend is still in slowing pace.

Therefore, the summations of the 3 signals above is still implying Bear strength is in favor. +DMI has crossed below -DMI for the first week indicating the Bull strength is out of favor but slower ADX has indicated the current trend is not firmed yet. Therefore, I am still expecting KLCI will continue to consolidate in between the support range of 1541-1600 before a clearer signal emerged. Nevertheless, caution is still required until the barrier of 1610 is cleared.

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From wave count perspective, the Higher Degree of Correction wave would be prolong with Multiple WXYXZ complex waves before a new set of Higher Degree of Bull Wave take place. Besides that, wave C has been justified and end at 1483.73 after 1552.07 was penetrated. However, Wave Z is still not been realized yet. Subsequent minor waves would be elaborated further in daily time frame.

Prevailing trend could be emerged if Weekly levels listed below was broken:

Resistance - 1610, 1615, 1619, 1627, 1633, 1642, 1650, 1700, 1720

Immediate Resistance - 1556, 1564, 1571, 1575, 1580, 1590, 1595, 1600

Immediate Support - 1541, 1535, 1530, 1520-23, 1510, 1505, 1500

Support - 1484-1488, 1474-1476, 1466, 1452, 1447, 1436, 1407

Daily Time Frame

To recap from session 75, KLCI was consolidating in a tight range with volatile momentum and downward pressure still remain after the Bearish Engulfing Formation realized last week. Currently, micro sub minuette waves 4 was still being constructed with an complex correction waves of micro sub minuette waves WX completed and micro sub minuette waves Y was still underway which could lead to two possible targets of 1572 (FIBO 100% of micro wave W) or 1557 (FIBO 161.8% of micro wave W). Although one of the minimum criteria had been met at 1572, i won't rule out that micro sub minuette waves Y could form an extension waves for further downside to hit the next possible target 1557 or even 1559 (FIBO 50% of micro sub minuette waves 3) or 1548 (FIBO 61.8% of micro sub minuette waves 3).

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For the past one week, no doubt that micro sub minuette waves Y had formed an extension waves where it sent KLCI to the low of 1543.08 which 5 points beyond 1548 (FIBO 61.8% of micro sub minuette waves 3). Although it has met the minimum criteria, i won't justified it to end here as sub minuette wave 5 of micro sub minuette waves Y is still being structured as labelled and i won't rule out it will end lower at an possible target of 1540 (FIBO 100% of sub minuette wave 1). Since KLCI has returned below SP and DT line, the wave structure of sub minuette wave 5 is monitored closely.

Although wave C had been justified, i am still leaving Wave Z alone since the assumption of new corrective wave above is still yet to be justified with sub minuette waves abc which could form wave D at higher level. On the other hand, wave D would be justified earlier if 1526.34 breached where the high of micro sub minuette waves 3 (1604.98) would be justified as wave D instead.

To reiterate, Wave Z could be formed in various correctives wave structure (Zig-Zag, Flat, Diagonal and etc) with momentum changes.

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Since Multiple Complex Wave emerged, the new set of Higher Degree of 5 Waves Bull Run or Primary Wave 3 have yet to be seen until all corrective waves are served convincingly unless Wave X1 (1646.24) is penetrated. Thus, Higher Degree of Correction is still being prolong by these Multiple Complex Waves WXYXZ.

All waves' count and projected target are generated based on past/current price level and it may be subjected to vary if degree of momentum movement change.

Prevailing trend could be emerged if Daily levels listed below was broken:

Resistance - 1615, 1620, 1625-1628, 1639, 1645, 1650, 1662, 1679, 1685, 1700, 1720

Immediate resistance - 1556-1557, 1562-63, 1570, 1573, 1581, 1590-1593, 1600, 1608-1610

Immediate Support - 1544-1548, 1540, 1535, 1530, 1528, 1525

Support - 1512, 1505, 1500, 1495, 1490, 1484-1488, 1475 , 1461-1466, 1452, 1435

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Patient is required for the SUPER CYCLE Bull Run.

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Let's Mr Market pave the waves.

Trade safely

Wave Believer

Discussions

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hotstock1975

Since 1526.34 breached today, revision counts where wave D has been justified earlier with the completion of sub minuette waves abc as mentioned. Instead, wave E has been on the way down from 1604.98 to current level and downside targets will be reveal. Finger Cross.

2021-09-21 16:32

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